Which of the Following Is Not True Regarding Mutual Funds

question 38

Multiple Choice

Which of the following is not true regarding mutual funds?

• A) There are thousands of funds with many different investing objectives.
• B) They offer small investors diversification and professional management.
• C) Dividends received from their investments are used to pay operational expenses, and capital gains are passed on to the mutual fund shareowners.
• D) Both dividends and gains are distributed to mutual fund shareowners.

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Definitions:

Sugar

A sweet-tasting, soluble substance obtained from plants like sugar cane and sugar beet, used primarily as a sweetener in food and beverages.

Combining Form

In linguistics, especially in the formation of compound words, a morpheme that is used in combination with another form to create a new word or term.

Poison

Substances that cause harm, illness, or death when ingested, inhaled, or absorbed into the body in sufficient quantities.

Toxin

A harmful substance produced within living cells or organisms; can cause disease when introduced into the body tissues.